WCF Advisors Blog

2022 Q1 M&A activity update

Aug 05, 2022
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Market Updates
M&A activity(1) The 2022 global M&A market is lagging slightly behind the very busy latter half of 2021 but is still in line with that of the previous five years. PitchBook reports that the North American deal market closed 4,739 deals worth a combined $611.3 billion, a 20% decrease for both. New dealmaking took a brief pause in Q1 because of geopolitical uncertainty due to Russia’s invasion of Ukraine and rising inflation. The Consumer Price Index rose 8.5% year over year,...

M&A deal activity continues to reach record highs in Q4 2021

Mar 28, 2022
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Market Updates
Deal activity in the fourth quarter of 2021 continued its record-setting pace as seen in the previous three quarters, driven by the continued economic recovery, favorable cost of debt, high levels of dry powder and strengthening job market. Favorable stock prices and relatively low borrowing costs spurred buyers. The robust activity is expected to continue in 2022 amidst new challenges and uncertainty. Investors’ concerns regarding interest rate have heightened, as the Fed has signaled...

Closet Works’ $21.5 million sale to The Container Store

Mar 08, 2022
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Client Success Stories
Home improvement frenzy creates prime selling opportunity for business owners When Frank and Tom Happ were ready to sell Closet Works, the Chicago-based company they had bought and transformed over the prior nine years, business was surging. Amid the COVID-19 pandemic, people had hunkered down to create or improve their home organization systems — including closets, pantries, offices, mudrooms and garages — during the home-buying frenzy. There quickly proved to be a lot of interest...

M&A market experiences record deal activity in Q3 2021

Dec 14, 2021
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Market Updates
Deal activity in the third quarter of 2021 continued its record-setting pace. As seen in the previous two quarters, it was driven by the continued economic recovery, favorable cost of debt, high levels of dry powder and strengthening job market. The fourth quarter of 2021 is expected to see a record level of M&A volume ahead of the potential capital gains tax change. Looking forward, 2022 is poised for another strong year of M&A, with private equity firms sitting on an unprecedented...

M&A market heats up in Q2 2021

Sep 08, 2021
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Market Updates
Deal activity in the second quarter of 2021 continued at the feverish pace seen in the previous two quarters, driven by the continued economic recovery, favorable cost of debt, high levels of dry powder and a strengthening job market. The continued economic recovery has driven valuation multiples back toward prepandemic levels. As the vaccinated population increases and consumer sentiment continues to improve, the M&A market — as well as the economy as a whole — experienced...

M&A market continues rebound in Q1 2021

Jun 11, 2021
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Market Updates
Through the first quarter of 2021, the global economy and the M&A landscape continued to show signs of recovery. Several months of pent-up seller interest led the charge in an uptick in deal volume toward the end of 2020, with valuation multiples making their way back toward pre-pandemic levels. Successful vaccine rollouts, relaxed COVID-19 restrictions, improved consumer sentiment and a strengthening job market have contributed to recent economic and M&A market rebounds. While M&A...

Selling two family-owned businesses: Security Door & Hardware Co. and Security Builders Supply Co.

Jan 27, 2021
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Client Success Stories
The majority owners of Security Door & Hardware Co. and Security Builders Supply Co., Ron and Russ Benson, had built and grown the two family-held businesses all their lives. Now, ready to retire, the Benson brothers were looking to sell. They hoped to find a new owner who would be a good steward for the businesses, one who would care about their employees and continue the legacy of the two companies. As longtime accounting clients of Wipfli LLP, the owners decided to engage affiliate Wipfli...

COVID-19 pandemic leaves imprint on M&A marketplace during Q2 2020

Dec 09, 2020
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Market Updates
During Q2 2020, the U.S. and Canada both confirmed their economies entered recessions during the previous quarter. While Canada has since emerged, the U.S. outlook continues to sour as the economy faces potential shutdowns, continued rising unemployment, deteriorating financing conditions and increased expectations of a prolonged recession.  The COVID-19 pandemic has resulted in virtually no change in valuations on dramatically reduced volume and debt usage between Q1 and Q2 2020. Although...

Pandemic brings slowdown and uncertainty for 2020; rebound coming into view

Jun 22, 2020
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Market Updates
After another strong year of M&A activity in 2019, the first quarter of 2020 began in a similar fashion but ended with feelings of uncertainty, at best, and fear, at worst. Although the landscape has continued to evolve over the last two months, it is important to understand where things stood pre-COVID-19 and use these baselines to make informed decisions in the months ahead. M&A deal activity The COVID-19 coronavirus backdrop led to a sudden shift in the underlying macro dynamics...

M&A deal activity falls, but sellers still have options

May 06, 2020
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Market Updates
Our last newsletter started off, “Let the good times roll” as we finished off a strong calendar 2019 and looked forward to 2020. Well, that sentiment was most certainly shattered and in a much shorter time frame than anticipated. However, we remain bullish on M&A on the whole and offer a few words of wisdom on current and anticipated near-term trends. M&A deal activity FactSet reports that total U.S. M&A deal activity dropped 18.8% in March 2020, with 862 announcements...

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